e-estonia The Digital Society
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- Sherilyn Malone
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1 e-estonia The Digital Society
2 estonia in facts e-estonia / The Digital Society location Northeastern Europe (southern shore of the Gulf of Finland) population 1.3 million language Estonian finland size km 2 norway sweden estonia russia capital city Tallinn latvia currency Euro Lithuania BELARUS government Parliamentary democracy POLAND member of European Union, NATO, WTO, OECD germany UKRAINE contents france italy Estonia - The Ground Where Future Walks On / pg 6-11 / Estonian Information and Telecommunication Export Cluster - Where Builders of Marvels Come Together / pg / Estonian ICT Export Cluster / pg 15 / Estonian ICT Demo Center - Chamber of Wonders / pg / Estonian e-services - In a Relationship with Simplicity / pg / Society of e-solutions / pg 23 / Citizens / pg 23 / State / pg 23 / Government / pg 24 / Education / pg 26 / Healthcare / pg 26 / Business / pg / Telecommunication / pg / Law Enforcement and e-police / pg 30 / Cybersecurity / pg / Utilities / pg / Contacts / pg 35 / spain 4 5
3 Estonia The Ground Where Future Walks On
4 e-estonia / The Digital Society Inspired by Information Estonia is an incredible success story grown out of a partnership between a forward-thinking government, a pro-active ICT sector and a switched-on, tech-savvy population. The success of Estonia stems from its role as an insightful and courageous implementer of new ideas and technologies. An idea in itself is never enough, no matter how dazzling a potential it carries. An idea needs to be employed in order to foster public interaction and living conditions on a truly large scale. Digital Society and Infrastructure The e-estonia digital society is made possible largely due to its infrastructure. Instead of developing a single, all-encompassing central system, Estonia created an open, decentralized system that links together various services and databases. The flexibility provided by this open set-up has allowed new components of digital society to be developed and added through the years. That power to expand has allowed Estonia to grow into one of Europe s success stories of the last decade. Estonia s e-solutions Have Resulted in:» An unprecedented level of transparency and accessibility in government» Safe, convenient and flexible exchange of private, government and corporate data» A healthier, better educated population with an easy access to social services» A prosperous environment for business and entrepreneurship Through the wide range of state procurements, the companies from the Estonian ICT Export Cluster have done exactly that - they have built up the spectacular e-estonia as we know it. Principles Behind Digital Foundation» Decentralization There s no central database and every stakeholder, be it a government department, a ministry or a business, gets to choose its own system in its own time. Life in the Digital Society E-Estonia means casting a ballot from the comfort of your own living room. It means filing your income tax return in just five minutes or signing a legally-binding contract over the Internet from anywhere in the world via your mobile phone. These are just a few of the services that Estonians take advantage of on a regular basis. Entrepreneurs can register businesses in as little as 20 minutes, check vital company, property and legal records online, and even integrate their own secure services with the ones offered by the state. Interaction among government agencies, and between the government and citizens, has been completely transformed in e-estonia, quickly making bureaucracy a thing of the past.» Interconnectivity All the elements in the system must be able to work together smoothly.» Open platform Any institution can use the infrastructure.» Open-ended process A continuous project which keeps growing and improving organically.» Infrastructure A flexible and open system linking together various databases. 8 9
5 e-estonia / The Digital Society Recent developments in e-estonia Estonia has by far the most highly-developed ID card system in the world, providing access to a range of online services In 2005, Estonia became the first country in history to make internet voting available in a nationwide election In 2010, the number of mobile phone contracts in the country surpassed the one of residents (121 per 100 people) NATURE OF CLUSTER If the companies of the same or similar field of activity perceive the need to act jointly and this leads to the specification of common objectives, planning and implementation of common activities, a cluster is born. In a cluster, cooperation exists between people, not between organizations or institutions. Which means that the common interests of cluster parties outweigh the aspect of competition. Internet in 2012:» free Wi-Fi is widespread in urban areas, particularly in Tallinn, which has been named among the top ten cities on the globe for Wi-Fi convenience» 1140 public Wi-Fi areas for km²» 100% of schools and government organizations have broadband connection» 3/4 of the population have a computer at home» 68% of homes have broadband connection» various 3G and 4G networks available anywhere across the country In 2010, 99% of bank transfers were performed electronically In 2010, more than 50% of drivers in downtown Tallinn paid for their parking via SMS In 2011, 94% of tax returns were filed via the e-tax Board In the 2011 Parliamentary elections, 24.3 % of votes were cast over the internet Did you know that...» Estonia has become a hotbed of software innovation. Amongst other groundbreaking solutions, Skype was developed here» Tallinn is home to NATO s Cyber Defense Centre of Excellence 10 11
6 Estonian ICT Export Cluster Where Builders of Marvels Come Together
7 e-estonia / The Digital Society Estonian ICT Export Cluster Ignoring the Impossible Estonia as an e-country is well and widely known. Skype has its origins here, as well as many other wonderful ICT and e-government solutions. The majority of these solutions have been developed by the private sector, down to the software for the cabinet meetings of the Ministers. The common denominator for Estonian ICT companies is their efficiency, creativity and the ability to ignore the concept of impossible. These ICT companies are experienced in providing sophisticated e-government and other IT solutions not only for the Estonian state and local governments but for organizations around the world. There is a heightened interest and a growing demand for e-id and X-Road solutions as these are more flexible and readily adaptable to the rigors of planning and the whims of politics. Promoting the Knowledge Began in 2010 and supported chiefly by Enterprise Estonia and Tallinn Enterprise Board, the ICT Export Cluster is a three-year project for exporting the groundbreaking e-solutions that have been developed and implemented in Estonia. The cluster is made up of the core companies that made the e-estonia phenomenon possible. Its aim is to share the innovative, cost-effective technologies that have transformed Estonia into the leading e-society that it is today, allowing other governments, communities and private companies to benefit from them. Estonian ICT Export Cluster Brings Together Companies and Universities for:» Market research» Promotional visits to the Middle East, United States of America, Russian Federation and numerous European and African countries» Production of marketing materials» Cooperating with universities to improve study programs» Hiring foreign experts to help Estonian companies with marketing know-how Estonian ICT export cluster» supported by Enterprise Estonia and Tallinn Enterprise Board» based in ICT Demo Center Lõõtsa 8, Tallinn, Estonia Overall information about the cluster can be found at
8 Estonian ICT Demo Center Chamber of Wonders
9 » Community of ICT companies aiming for wider usage of IT services» Platform for international ICT cooperation» Non-profit, funded by members The Place to See Estonian ICT in Action ICT Demo Center s purpose is to showcase the nation s ICT solutions all in one Outline of Estonian ICT Demo Center Enterprise Area set up as a real company with a salesman, accountant and various managers, to demonstrate systems designed for use in business facility, to illustrate their usage possibilities both in private and public sector and Home Environment to provide visitors with hands-on examples of what they are and how they work. includes existing ICT solutions for households The center is an environment for introducing information and telecommunication State section technologies in Estonia and on an international scale. It promotes the cooperation between the members in the field of participation in ICT solution product develop- e-government solutions explained ment and joint procurements. Estonian ICT Demo Center is one of the main forces standing behind increasing the marketing and sales capability of the Estonian ICT companies at the international level. School Environment shows IT usage in the teaching process Since opening its doors in 2009, the bustling center has hosted everyone from presidents and ministers to CEOs and journalists essentially anyone who has Forest Management division highlighting remote solutions and communication options needed a better understanding of the technology developed and used. Technical Playground designed to show ICT technological solutions to CEOs and other specialists More information on the Estonian ICT Demo Center can be found at
10 Estonian e-services In a Relationship with Simplicity
11 e-estonia / The Digital Society X-Road is the all-important connection between the e-services, the tool allowing them to work together for maximum impact. All Estonian e-solutions which need to interact with multiple other databases systems use X-Road. X-Road Key Elements of e-estonia s Infrastructure The Backbone of e-estonia The X-Road is a critical tool, one of the key ingredients in e-estonia s infrastructure that connects all the decentralized components of the system together. It s the environment that allows the nation s various e-services and databases, both in the public and private sector, to link up and operate in harmony no matter what platform they use. Architecture:» Data owners decide who can see their information» There s no single owner or controller» Every government agency or business can choose the e-service that s right for them» Services can be added one at a time, as they are ready Electronic ID Card Estonia has the most highly-developed national ID card system in the world. Much more than simply a legal picture ID, this mandatory national card (from the age 15 onwards) serves as a digital access card for every secure e-service in Estonia. The chip on the card carries embedded files which, using 2048-bit public key encryption, enable it to be used as definitive proof of ID in an electronic environment. ID Card is Regularly Used:» As a national ID card for legal travel within the EU and Schengen Area» As a national health insurance card» As proof of identification when logging into bank accounts from a home computer» As a pre-paid public transport ticket in Tallinn and Tartu» For digital signatures» For i-voting» For accessing government databases to check one s medical records, to file taxes, etc.» For picking up e-prescriptions Mobile-ID Mobile-ID is a service that allows to use your mobile phone as a form of secure electronic ID. Like the ID Card, it can be used for accessing secure e-services and digitally signing documents, but with the advantage of not requiring a card reader. The system is based on a specialized Mobile-ID SIM card attainable from the mobile phone operator. Private keys are stored on the mobile SIM card along with a small application for authentication and signing. Society of e-solutions Citizens State e-services Portal The State Portal eesti.ee is a website that acts as a one-stop-shop for the hundreds of e-services offered by various government institutions. The portal is divided into different sections one for citizens, one for entrepreneurs, and one for officials making it easy for the user to find the service he is looking for. Once logged into the system with an electronic ID, the user does not have to repeat the log in when accessing different services. The site also creates awareness of other e-services available, as visitors will discover new options whilst browsing through it. 22 The electronic ID Card was introduced in 2002 and by 2011, nearly 90% of the Estonian residents were carrying one. 23
12 Information contained:» Cadastral information - address, area, purpose of land» Ownership relations» Encumbrances, restrictions, rights of use, other notations» Mortgage information e-estonia / The Digital Society Government e-cabinet E-Cabinet is a multi-user database and a scheduler that keeps relevant information organized and updated in real time, while offering ministers a clear overview of each item under discussion. Once Estonia adopted its e-cabinet system, the average length of the weekly cabinet meetings was cut from 4-5 hours to just minutes. Not only can ministers take part remotely, but the government has also eliminated the need to print and deliver thousands of pages of documents each week. easy and accessible increases voter turnout. Already in 2007, Estonia made headlines as the first country to use i-voting in Parliamentary elections. In the 2011 Parliamentary elections, 24.3 % of voters cast their ballots via the i-voting system. e-tax E-Tax is the electronic tax filing system set up by the Estonian Tax and Customs Board. Since its introduction in 2000, it has drastically reduced the time spent by individuals and entrepreneurs on filing taxes. In 2002, the system matured tremendously with automated tax declaration forms. Using a secure ID, a taxpayer logs into the system, reviews his data in the pre-filled forms, makes necessary changes, and approves the document with a digital signature. The process typically takes five minutes and when filed electronically, the taxpayer obtains his tax refund in about five days. In 2011, 94% of tax returns were filed electronically. e-customs e- Customs is a fully automated information system of the Estonian Tax and Customs Board s that connects traders with customs over the Internet. e-customs has saved Estonia considerable amounts of money each year. Declarations take less time now and any inaccuracies can be corrected before the data is submitted, lessening the need for customs supervision. Fully electronic declarations processed in real time, less required documents and the reduction of traders and customs costs earned Estonia the 4th position on World Bank list of countries where trading across borders is easy. Electronic Land Register Electronic Land Register is a one-of-a-kind web application containing information on all ownership relationships concerning real estates and land parcels. i-voting I-Voting is a system that allows voters to cast their ballots from any internet-connected computer from anywhere in the world. Unrelated to the electronic voting systems used elsewhere which often involve costly and problematic machinery, the Estonian solution is simple, elegant and secure. In 2005, Estonia became the first nation in history to offer internet voting in a nationwide election. The groundbreaking i-voting system allows citizens to vote at their convenience, no matter how far they are from a polling station. As an added benefit, making the process 24 25
13 As a critical tool for the real estate market, it provides total transparency whilst listing the registered owner of each property holding together with the latter s boundaries, and provides other necessary information that potential buyers need to obtain. Education e-school E-School has revolutionized the way students, teachers and parents interact. Estonia has revolutionized the way an education is administered and has helped to create a generation that is both bettereducated and tech-savvy. In 2010, over 70% of schools were using e-school, covering about 95% of all grade school students. In autumn 2011, an application for all the necessary study materials was launched for e-school, making all the textbooks and exercise books accessible from all over the world. Functions: Teachers enter grades and attendance information into the system, post homework assignments and evaluate student behavior. They also use it to send messages to parents, students or to an entire class. Parents use it to stay closely involved in their children s education. They can see their children s homework assignments, grades, attendance information and teacher s notes, as well as communicate directly with teachers via the system. Students can read their own grades and keep track of their homework assignments on a daily basis. They can also keep their best work in personal e-portfolios. District administrators have access to the latest statistical reports on demand, making it easy to consolidate data across the district s schools. Healthcare e-prescription E-Prescription is a centralized, paperless system for issuing and handling medical prescriptions. The efficient system to which every hospital and pharmacy in Estonia is connected, cuts down on paperwork and doctor visits, and saves an untold amount of time and effort. Doctors prescribe medicine electronically and at the pharmacy, all a patient needs to do, is present an ID Card. The pharmacist then retrieves the patient s information from the system and fills the prescription. Electronic Health Record Electronic Health Record is a nationwide system that integrates data from Estonia s different healthcare providers, creating a common record for each patient. It s a powerful tool for doctors, granting them easy access to patient records from a single electronic file. Doctors can read test results as soon as they are entered, including image files such as X-rays. In case of emergencies, doctors can use a patient s ID Card to read time-critical information. Patients have access to their own records, as well as those of their children. By logging into the Patient Portal (with an ID Card), they can review their past doctor visits and current prescriptions, control which doctors have access to their files, and even receive general health advice. Business Digital Signature Digital ID, one of the world s most advanced digital signature systems, is the nationally standardized system for verifying a person s identity in an online environment. It opens the door to all secure e-services while maintaining the highest level of security and trust. One can digitally sign documents either with an ID Card or the Mobile-ID. Advantages of DigiDoc:» No need to send paper documents, saves time and courier costs» Lower environmental impact» Documents remain private» Documents can be signed from every corner of the world via mobile phone 26 27
14 In March 2000, a law was passed in the Parliament giving electronic signatures the same legal weight with the traditional paper signatures. Thus, the nation s groundbreaking electronic ID infrastructure has created an effective and universal system for secure identification. Estonia s digital signature system has paved the way for some of its most useful e-services, including Company Registration Portal, the i-voting system, electronic tax filing and DigiDoc. DigiDoc DigiDoc is a system for storing, sharing and digitally signing documents. After logging into the DigiDoc system (with an ID Card or Mobile-ID), the user can upload any document, sign it digitally and forward it to other parties. Any type of file can be entered for signature a word processing document, a photo or even an instant messaging chat; voice recordings can be uploaded by phone. Every time users log on, they see their uploaded files as well as those they have signed. DigiDoc utilizes the robust public key encryption of the Estonian ID Card and Mobile-ID, and meets the EU s strictest standards of security. DigiDoc Client is a MS Windows application for creating and verifying digitally signed files. The proof of validity of the signer s certificate is obtained at the time of signature creature and DigiDoc Client verifies the digitally signed file automatically on opening. e-business Register Transparent e-business Register provides actual and adequate online information on all profit and nonprofit organizations, including political parties, and on persons related to any business activities. Thousands from banks up to law enforcement, or just citizens, use the services of e-business Register at any moment of the day. When in need to find a business partner, to check a company s income report or credibility, to confirm a role of a chairman or a shareholder, or to find links of people on the basis of companies - one can just turn to the Business Register online. You can register a company over the internet just in minutes and do any needed procedures (change, merge, reporting, etc.) over the internet using digital signatures and ID technology. Outstanding Features of e-business Register:» entirely paperless institution» e-services are offered for any related needs» public institutions can t ask registering documents from companies - the screen is the law» annual reports and other documents may be delivered to the Registry only in electronic way, through the e-business Register» all the information is public E-Business Register guarantees clean and honest businessenvironment providing reliable information and effective e-services for everybody - public institutions, companies and individuals. Telecommunication Mobile Payment Mobile Payment is a feature that allows customers to pay for goods and services using their mobile phones in place of credit cards. The system can also be used for payments on public transport, in shops and pubs, and for buying products from vending machines. Typically, the client dials the mobile payment service number, and enters the merchant s code and the amount of the payment or the product code. The bank then transfers money to the merchant s account within three days, charging a service fee. At the end of the month, the mobile payment bill is displayed separately on the client s phone bill. m-parking Mobile Parking (m-parking) is a convenient system that lets drivers pay for their city parking using their mobile phones. On parking, the driver sends an SMS with the parking zone s code to the system s operator or uses a special application on his phone. If the police check the vehicle s registration number in their database, they will see that parking has been paid for. On leaving, the driver can once again use the application or make a short call to the operator. At the end of the month, the cost of parking is added to the driver s mobile phone bill. Location-Based Services Location-Based Service (LBS) is any service that can determine the location of a mobile device and provide information based on that location. Estonia s most impressive development in LBS has taken place in the area of positioning services. In 2000, Estonia made headlines by pioneering a system that can instantly pinpoint the location of any GSM mobile phone that is used to make an emergency call. The system has become an invaluable tool for Estonia s rescue workers who would otherwise have trouble locating victims calling from remote areas
15 e-estonia / The Digital Society LBS systems also provide location data for several geographical information systems (GIS) which deliver visual representations of the database information on a map. GIS systems give the user an easy-to-see overview of the information, all the while keeping all vital details available at the click of a mouse. Law Enforcement and e-police Best Possible Communication E-Police system involves two main tools: a mobile workstation installed in each patrol car, and a positioning system that shows the location and status of every officer to the headquarters. car. Also, a separate positioning system allows the police to quickly pinpoint the origin of an emergency call made from a mobile phone a crucial necessity when dispatching rescue services to remote areas. Law enforcement institutions are well equipped with crime analysis tools which are effectively used in public registers and police databases. As a result, more crime schemes are defined, more criminals convicted and the sophisticated Register of Prisons and Prisoners is kept up-to-date. Cybersecurity Digital societies are built on security and trust. With heavy investments in its cybersecurity infrastructure, Estonia has developed extensive expertise in that area, becoming one of the most recognized and valued cybersecurity experts internationally. The Estonian Information System s Authority (EISA) helps organizations from private and public sector to maintain the security of their information systems, whereas the Department of Critical Information Infrastructure Protection (CIIP) evaluates the security of information systems in Estonia and carries out risk assessments. The Computer Emergency Response Team Estonia (CERT-EE) handles security incidents within the.ee domain. The team is engaged any time there is a cyber-attack against Internet sites or services in Estonia, or when a malware infection is spreading from Estonian computers. In latter case, the team also has the capability and skills to reverse-engineer the malware. CERT played a central role in successful cyber defence in 2007, when Estonia experienced massive cyber attacks. Estonia is also home to the NATO Cooperative Cyber Defence Center of Excellence (CCDCoE). The country serves as an international NATO Competence Center, providing the members and partners of NATO with cybersecurity expertise, educational and training resources, and assistance in policy development. Estonia was specifically chosen as the site for the CCDCoE due to its expertise in the areas of cybersecurity and e-government. Estonia s achievements in cybersecurity have benefited from a strong IT partnership between the public and private sector. This unique spirit of cooperation created the Cyber Every patrol car in the country is equipped with a mobile workstation that provides officers with instant access to multiple key databases. That means they ll not only see criminal records, but also relevant information from the State Registry of Service and Civil Weapons, the Motor Vehicle Registration Centre, the Traffic Insurance Fund and the Population Register all arriving in just two seconds. The positioning system gives the command center realtime information on the location and status of every patrol 30 31
16 e-estonia / The Digital Society Defence League a volunteer organization tasked with assisting the nation during a cyber-attack. The Cyber Defence League comprises IT security experts, software developers, legal professionals, and management specialists from the nation s top IT companies, banks, Internet Service Providers, and defense forces. The key to Estonia s cybersecurity lies in the safety and security inherent in every e-government and IT infrastructure system engineered in Estonia. The secure 2048-bit encryption that powers the country s electronic ID, digital signatures, and systems connected to the X-Road data exchange layer guarantees unparalleled protection for personal identity and personal data in e-estonia. The S4A Intrusion Detection System S4A relies on a nation-wide network of sensors designed to monitor threat situations in multiple organizations over the Internet. By providing organizations of any size with purpose-built hardware and software to detect network intrusions, S4A is helping network administrators to identify infected computers, while CERT-EE provides assistance with the containment and cleaning up of the source of the attack. Virtual Situation Room Estonian Virtual Situation Room supports people in making decisions concerning the anticipation, avoidance, withstanding, minimization and recovery from the effects of man-made or natural disasters. The Virtual Situation Room collects and visualizes data about critical services such as electricity, communications, and water supply, thereby providing real-time information crucial for the making of informed decisions and allocating the necessary resources during critical situations. Utilities Saving Energy for a Cleaner Environment Estonia s strong climate for innovation has led to the development of cutting-edge tools for the utilities and intelligent homes industries. These not only allow energy providers to serve their customers better, but give homeowners more options for savings and result in a cleaner environment. Using sophisticated technologies developed in Estonia, electricity providers can take a holistic approach to customer care. Advanced smart meters allow them to monitor each customer s consumption on an hourly basis. Then, by logging into a friendly, web-based interface, customers can in turn see their detailed metering results and adjust their usage accordingly. Working Hand in Hand The system controlling the smart metering and customer interface is also linked to the utility company s billing, saving the company time and money, and further reducing environmental impact. Additionally, these sophisticated utilities systems have the capacity to work together with intelligent homes and buildings systems created in Estonia, allowing them to operate more efficiently than ever before. Estonian intelligent buildings systems, which allow users to monitor and control vital functions of the building such as heating, lighting and security, are far ahead of their counterparts from anywhere in the world. They are more integrated and rely less on expensive hardware for their interfaces. The use of such systems results in 30-50% energy savings over the lifetime of a building. Smart Grid and Energy Sector Benefiting distributors, consumers and our environment, Estonian entrepreneurs and software developers have created smart metering and billing management software which allows end users to monitor their consumption in real time, compare the various packages available and even choose how much of their energy will come from renewable sources. The system can predict when an area s electricity supply is likely to be strained, and automatically forward customers instant bonus offers for cutting their consumption during those times, thereby smoothing peaks and troughs in the local grid. Local innovators have also taken a new approach to smart homes, developing systems that integrate electrical, heating and security systems to a level not seen elsewhere. These systems are designed to maximize energy efficiency, which saves the homeowner money and is much friendlier on the environment than older methods of home management. Kelvingi village on the north coast of Estonia is already equipped with Smart Grid technologies enabling better real-time energy consumption management and creating possibilities for partial energy autonomy from the central electrical grid. With the help of real-time consumption monitoring and prognosis (the energy consumption is measured on an hourly basis), it is possible to save up to 25% on the energy bill. The Smart Grid enables to integrate the micro wind and solar power generators into the system and allows to take part in power trading with one s neighbours. Smart Grid supports the strategy for a future low-carbon society and will be accessible to the entire country by Social Security and Welfare Accessing the system through the State Portal, an individual can apply for maternity benefits or a worker s disability compensation without leaving home
17 e-estonia / The Digital Society timeline 2000 launch of e-tax Board What Can We Do for You? 2000 launch of m-parking 2001 X-road 2002 ID Card Thriving on the visionary power of the ICT Export Cluster, the Estonian ICT Demo Center stands as a gateway for the Estonian ICT know-how to anywhere in the world. We are experienced in implementing ideas according to the needs of a specific sector, field or an entire country. Whereas earlier, an applicant would have visited a number of different offices to collect various documents proving their eligibility, then now, records from hospitals, the health insurance fund and other institutions are integrated via X-Road, eliminating the applicant s need to visit those institutions in person. Population Register Population Register is the state s database for holding basic information about each person living in Estonia. It contains the names, ID codes, birth dates, places of residence and other statistical data (nationality, native language, education and profession) of every resident. Each resident can in turn review and correct his data in the registry. X-Road connects the register to other systems, so when a person applies for childbirth or study allowances, or discounted tickets on public transport, data is retrieved from the Population Register launch of ID bus ticket 2005 i-voting introduced 2007 launch of Mobile-ID 2007 launch of e-police system 2008 launch of e-health system 2010 launch of e-prescription If you are holding an idea in your hands, an idea which almost sounds too extravagant or unthinkable to be put into practice, then we have the exact know-how on how to employ it. We ll make your ideas sound. Feel Free to Contact Us! P E [email protected] 2011 launch of Smart Grid 34 35
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